Jeff in TD

I've never bought a financed vehicle from another party, so I'm wondering what the best way to do it would be...

The situation is this: Truck is about 5 hours away, so I don't want to make more than one trip. Guy owes like $5k...

We've discussed me coming up, and if we made a deal, I'd verify the payoff with the bank (which is not local) and write a check payable to the bank to pay it off. Both of us would go stick the check in a mail box.

Then I'd leave a small deposit and leave with the truck, and when he sends the signed off title to me, I'd send him a check for the balance of the sale price.

Naturally we would do a bill of sale outlining everything...

The guy seems very trustworthy and is original owner (06), but if he failed to send the title, I'd have a mess.

Admittedly he is more at risk, and would be trusting me a great deal to let me leave with the truck w/o knowing if the check to the finance company would clear, and he'd really be trusting me to send him the rest of the money once he's mailed the signed off title.

Is there a simpler way to purchase a financed vehicle from a private party when the seller has a loan?

RowJ

I once walked away from a deal like that!
But it sounds like you have everything covered.
Obvious risk is you end up with truck and no title??
Can't see anything in it for him to want to do that.

Only better way would be to meet at the bank...but assume you thought of that??

RJ

vzdude

Go during the week. Make sure the bank has the title at their facility. ( they can arrange to have it there with enough notice ) Pay the owner, pay the bank balance, write up a bill of sale and have the bank personell notarize the bill of sale as a witness. That should cover all the bases.

Remember to always cover your 6! In GOD we trust.......all others pay cash and keep your hands where I can see them!

cdennyb

I agree, meet at the bank, pay off the loan with certified funds, pay the owner with certified funds, the bank signs off...gives you the title and the bill of sale and everyone goes there seperate ways happy.

Truckman0097

Sounds like the bank the guy has the loan through is not local to where the truck is... but I would still meet at a local bank or DMV and have a notary sign the Bill of Sale that has all the details and be a witness, that way if you dont receive the title or if he doesnt receive his money, it is in writing... sounds like you covered your bases, and if this is the only way to do it, you dont seem to be at too much risk...

Foxborough

Call the bank that has the title and explain the situation. I am sure the bank would want to trade cash for the title. They may have a better idea that would be good for all.

DmaxEter

I sold my last truck to a guy about 300 miles away while I still owed on it. I met him half way, got a copy of his drivers license, he provided a cashiers check from a big name bank for the amount that was agreed upon. He went his way and I went mine. I went to the bank the next day and since it was a cashiers check from another bank it went strait into my account that night. Funds were verified that quick from my bank and all was good. I worte a check to pay the truck off and in MS about two weeks later I had the title. I mailed it to him and in less than three weeks he had his title and his truck and I had ordered my Dodge! It was very smooth. Cashiers checks from big name banks are a good thing!

PaulDaisy

I sold a financed van. The buyer paid the bank the full amount that we agreed upon and the bank took the payoff amount and gave me the rest of the money. I never saw the title, it went directly from my bank to the bank of the buyer (he financed the van too).

Iron Mike

When we bought my wifes Expedition. We met the guy at his bank which was 2 towns over for him and 2 hr. drive for me. I brought a Cashiers Check from my bank. He handed it to the teller, she gave me the Notarized title and a Notarized Bill of Sale that he provided. This was done standing at the drive thru. It was after their Lobby hours but he had called ahead and pre-arranged it all. Worked flawless. I drove away with the Expedition and he rode home with his wife.

Jeff in TD

Thanks for the replies, guys.

If the title was at a local bank, meeting there and getting the title would be perfect, but it's with Chrysler, so I'm sure the title is in another state back east somewhere.

Anyhow, I figured the dealership must take in vehicles that are financed all the time, and they don't rely on the previous owner to sign off and forward the title to them at a later date...

I stopped by and asked the manager at the local Dodge dealer how they handle it.

He gave me a little slip of paper for the seller to sign, a power of attorney limited to giving power to release the seller's interest in the vehicle and for me to obtain title.

A second document authorizes me to pay off the loan, which I can bring to my dealer along with the payoff amount, and it will cause Chrysler bank to send the title to my dealer...

In the morning I'll go up there, and if the truck is what it appears, I'll give the seller a cashier's check for the balance (what I'm buying it for minus the payoff) and have him sign those two documents...

Then I take the one form to the dealership and pay the loan off, and I'll get the title directly, and can get it titled in my name at DMV with the other form...

I knew professionals must have an easy way to do this, that protects both parties...



The guys at my local dodge dealer are really good to me, and he really went out of his way and gave me the forms I need to do this right.

I bought my current truck there, and his price was pretty much the same as the Idaho guy. I'd have bought there again, except I don't want the 6.7 and they haven't gotten in a used 5.9 that was equipped quite like I want...

Rednecktastic

The title isn't going to be at the bank but will be at a holding place somewhere... Took awhile to get to me when I paid my last truck off.

I paid it off before the guy bought it and they sent the title to the wrong address. Made the guy who bought my nervous I bet.... It took awhile, 5-6 weeks.

Totallyrad

This is all good I guess but I'm a skeptic so let me throw a couple things at you. First, IMHO most folks who own a 2 year old truck owe more than 5k so I'm suspicious. Second, what if he owes more than 5k?. Third, what if he's borrowed against it at a title loan or some other place?

vzdude

Good points Rick! If I can't leave with the title, they don't get my cash/check/money order or nuttin' !

Jeff in TD

I didn't just take the guy's word for the payoff. He gave me his login info. All you can really do is view the payment and payoff info, and I printed off the payoff.

The neighborhood I'm heading to is spendy, so the low payoff didn't seem too strange. Carfax indicates DMV shows a lein holder... I'd guess they would indicate if there was more than one.

Having talked to this guy a bit, I think he's pretty legit. Selling the truck due to new house...

Jeff in TD

Well, the thing wasn't quite as clean (mainly inside the cab) as I had hoped, but now it's in my driveway.

It's an 06 Laramie H package dually stick shift, with navigation system, jake brake, B&W hitch, life sirius subscription, diamond plate bed/tail gate caps and matching tool box... and a scrape on the side of one of the rear fenders.

Once I can attack it with a carpet machine w/upolstry attachment, and get it in to get the fender painted, it should be an OK truck for what I'll have in it.